Feeds

Sanyo results hint at financial recovery

Battered but unbowed by scandal

Beginner's guide to SSL certificates

Scandal-hit electronics firm Sanyo showed signs it may be on the road to recovery despite posting net losses of ¥45bn (€275m) in its annual results.

The results, for the year ending 31 March 2007, showed the Osaka-based firm had sales of ¥2,215bn (€13.5bn), down 7.6 per cent from the previous year. Sanyo saw its operating profit rise to ¥49.5bn (€302m) from an operating loss of ¥17.2bn (€105m) a year earlier.

There was more positive news for investors as the firm forecast a return to profitability in the current financial year. Sales of ¥2,230bn (€13.6bn) are predicted for the year ending 31 March 2008, along with a net profit of ¥20bn (€122m). Operating profit, though, is expected to drop ¥45bn (€275m).

News of the results saw shares in Sanyo jump 3.2 per cent to ¥193 (€1.18). The figures were released just before the market closed.

The projected return to profitability is a welcome relief for investors in Sanyo which admitted recently to falsifying its results in 2003, having reported a profit when there was a possibility the Japanese firm had recorded a loss.

The scandal resulted in the appointment of a new president. Last month Seiichiro Sano became the first person from outside the founding Iue family to lead the firm as president or chairman of Sanyo since it was established in 1947. He replaced Toshimasa Iue, who stepped down in March, apologising for having failed to achieve reforms and change.

The accounting scandal surfaced as the electronics maker was undergoing an upheaval, reducing jobs and moving away from unprofitable interests under a revival plan. Sanyo sold its entire 17 per cent stake in Sanyo Electric Credit this month to General Electric for ¥21.6bn (€132m). The company is also selling its chip-making unit, Sanyo Semiconductor.

Sanyo received a capital boost last year from a group of investors led by Goldman Sachs, which became the company's top shareholders and took over the board, putting new management in place. On Monday one of these new appointees, Kentaro Yamagishi, was promoted to executive director and executive vice president, having previously served as deputy general manager with the firm.

Copyright © 2007, ENN

The next step in data security

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
JINGS! Microsoft Bing called Scots indyref RIGHT!
Redmond sporran metrics get one in the ten ring
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Murdoch to Europe: Inflict MORE PAIN on Google, please
'Platform for piracy' must be punished, or it'll kill us in FIVE YEARS
Bono: Apple will sort out monetising music where the labels failed
Remastered so hard it would be difficult or impossible to master it again
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Sony says year's losses will be FOUR TIMES DEEPER than thought
Losses of more than $2 BILLION loom over troubled Japanese corp
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.